Re: Will an auto loan help or hurt me?
10-02-2012 12:25 PM
your going to see a drop right off the bat - your going to have added at least 1 inquiry (usually it ends up being more when you shop for an auto loan and they don't ALWAYS get counted as one) then you're also going to take a hit on the average age of accounts since it will be new.
Over time you'll get those points back how quickly isn't really a set time frame. But after a year you should be better off then you are now as long as you didn't add any new negative info. 6 months might do the trick.
I will say this, don't think though by adding the car loan its going to improve your score - whats going to improve your score is really the time between the present and the last bad info.
You already have an installment loan (SL) so its not like adding one will help your credit profile. If you can pay cash or don't really need a new car, why not just wait and save up some more money till you do need a new car or till you can pay cash. Worse case scenario every month you wait, the closer you'll get to a better auto rate by having a lower score.
Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three